Indian stock market: Indian benchmark indices – Sensex and Nifty 50 – are expected to open in green on Tuesday as global markets were trading higher following SCO Summit meeting of leaders in Tianjin, with tariff uncertainty weighing on sentiment.
Asian markets opened mostly in green on September 2, meanwhile, US stock market remained closed on the occasion of Labour Day.
On Monday, both market indices, the Sensex and Nifty 50, rebounded ending their three-day losing streak with strong gains driven by buying across sectors.
The Sensex advanced 555 points, or 0.70 per cent, to close at 80,364.49, while the Nifty 50 rose 198 points, or 0.81 per cent, to settle at 24,625.05.
Mid- and small-cap stocks outperformed the benchmarks, with the BSE Midcap index climbing 1.64 per cent and the Smallcap index gaining 1.49 per cent.
Investor sentiment strengthened as India’s Q1 GDP growth surpassed market estimates. Anticipation of GST rationalisation in the upcoming council meeting also continues to act as a significant positive driver for the market.
“Nifty snapped its three-day losing streak and began September on a positive footing. While for the benchmark index this may look like a bounce from oversold territory after last week’s sharp sell-off, the broader picture was more encouraging, the Nifty Midcap Index gained over 2%, recovering the ground lost in the previous two sessions and outperforming the frontline index. From a chart perspective, today’s rebound was mainly seen from the recent lows across several key indices, highlighting that bulls are defending their ground amid oversold conditions and constructive domestic cues. Given the broad-based buying, we expect the bounce to extend in the coming days. That said, bulls are still not out of the woods, with overhead resistances to contend with,” said Rajesh Bhosale, Equity Technical Analyst, Angel One
Here are key global market cues for Sensex today:
Asian markets
Asian markets largely advanced as investors evaluated the Shanghai Cooperation Organization leaders’ meeting in Tianjin, though lingering tariff concerns dampened sentiment. Japan’s Nikkei 225 gained 0.31%, and the broader Topix index climbed 0.28%. In South Korea, the Kospi rose 0.45%, while the Kosdaq edged up 0.14%.
Gift Nifty today
Gift Nifty was trading around 24,759 level, a premium of nearly 30 points from the Nifty futures’ previous close, indicating a positive start for the Indian stock market indices.
Wall Street
The US stock market remained closed for trading on account of Labour Day public holiday.
Trump tariffs
U.S. President Donald Trump said on Monday describing trade relations with India as “a completely one-sided disaster!” following Prime Minister Narendra Modi’s visit to China for the Shanghai Cooperation Organization summit.
In a post on Truth Social, Trump also claimed that India had offered to reduce its tariffs to zero but remarked that “It’s getting late,” adding that the country should have done so “years ago,” without specifying when the offer was made.
SCO Summit 2025
On Monday, PM Modi and Russian President Vladimir Putin held 50-minute conversation in Russian President’s AURUS limousine. Both the leaders discussed the peaceful resolution of conflict in Ukraine.
“We exchanged views on regional and global developments, including the peaceful resolution of the conflict in Ukraine,” PM Modi said in a post on X after his meeting with Putin.
Following his meeting with Russian President Putin on Monday, PM Modi described the interaction as ‘excellent’ during the sidelines of the SCO summit. He stated that the two leaders discussed opportunities to enhance bilateral cooperation across various sectors, including trade, fertilisers, space, security, and culture.
RBI data on current account in Q1
India recorded a current account deficit in the April-June quarter, driven by a higher merchandise trade gap, the Reserve Bank of India said on Monday.
The deficit stood at $2.4 billion, or 0.2% of GDP, in the first quarter of FY 2025-26, compared with $8.6 billion, or 0.9% of GDP, during the same period last year.
Indian Rupee
The Indian rupee fell to a fresh record low on Monday, weighed down by strong hedging from importers and an increase in short positions amid elevated U.S. tariffs.
The currency depreciated to 88.33 against the U.S. dollar, breaching Friday’s earlier record low of 88.3075. Analysts pointed out that this drop extended the downward pressure seen late last week.
Crude Oil Prices
Oil prices climbed on Tuesday amid growing concerns over potential supply disruptions following heightened tensions in the Russia-Ukraine conflict. Brent crude gained 40 cents, or 0.59%, to reach $68.55 a barrel by 0149 GMT, while U.S. West Texas Intermediate rose $1.05, or 1.64%, to $65.06 a barrel.